This is a brain dump of the various times food is acquired in the business and how it needs to be treated in the accounts. Ideally, all businesses need a proper process for tracking these categories individually but many fall short of this.
If you are building a fintech business, your VAT world is likely more complex, as you need to be aware of what parts of the financial services sector your business serves. Many financial services businesses are exempt from VAT and as such cannot charge or reclaim any input VAT. This article considers the partial exempt scenario where you need to consider whether or not you need to operate a hybrid VAT model.
Choosing a business name in the United Kingdom (UK) is an important step when setting up a limited company. When choosing a name, you need to ensure the company name is not already in use.
As the admin of your Zoho organisation, you can assign users in your organisation different roles and limit what they can access. This article explains how.
If you breach the mandatory VAT registration threshold in a given month, your Effective VAT Registration Date will be the first day of the second month following the month of the breach.
Usually yes! Whilst you need to be careful with claiming food costs, as it can be difficult to prove that they are wholly and exclusively for business (given you need to eat to survive), HMRC has a term called itinerant in nature.
In the past 40 years, the accounting world has evolved from paper ledgers to spreadsheets to desktop accounting software. We are now in the cloud computing world, where businesses of all sizes use cloud accounting systems. As a small business, you will have several factors to consider when choosing the best accounting software for you.
When a company buyback its own shares from capital (as opposed to distributable profits) they are required to obtain statement from the active directors, formal shareholder approval, an auditors report, and file a public note in the Gazette. This administration burden as well as the potential costs from the auditors can be avoided via the Share Buyback De Minimis Exemption.
In Zoho Books, you may have to manually reauthorise your bank feeds from time to time if the feeds are not being fetched automatically. The process you use to refresh your bank feeds will depend on if your Token is working, it is about to expire or has already expired. This article explains what to do in each case.
No (well, not usually), you do not need to add export services to business customers when computing your turnover for the mandatory VAT registration threshold (that is £85,000 for 2022-23). This is because the export of services is considered to be out of scope for VAT.
If you are running your business from home, this article attempts to explain the tax implications of: Building an office in your garden and paying for the costs via your limited company, or via your self-employment business. Ongoing running costs of this purpose-built workspace in the garden.
If Spondoo runs your bookkeeping, you should have agreed on the dates in the month that you are due to receive bookkeeping reports that include your Recon & your Bills to Pay Reports.
A National Insurance number (NINO) is the number given to you by the UK government to keep track of your tax record and benefit entitlements. The Department of Work & Pensions (DWP) (England, Scotland, and Wales) and the Department for Social Development (DSD – for Northern Ireland) will issue you a National Insurance number (NINO) just before your 16th birthday if your parents made child benefit claims. If your parents or guardians have not claimed child benefits, you must apply for a National Insurance number - if you intend to work in the UK.
As a result of a 2014 First Tier Tribunal, there is technically no law or tax rule that stops unpaid share capital from remaining in your books indefinitely, as it was found that the monies owed by shareholders was a liability to honour an investment, not a repayment of money borrowed from the company
The Annual Accounting Scheme is one of HMRC’s VAT schemes designed to help small businesses by providing an increased degree of certainty of cash flows, as well as a reduced compliance burden. Unlike the usual VAT-registered businesses that submit their VAT Returns to HMRC 4 to 12 times a year, businesses under the Annual Accounting Scheme can do the following: Put forward a VAT return once a year. Submit advance VAT payments towards their VAT bill depending on their turnover. Established businesses make payments based on their last return, while businesses that are new to the scheme will calculate their payments based payments on their estimated turnover.
Petty Cash (also known as Petty Cash Fund) is a small amount of money kept on hand by a business to cover trivial expenditures. Often, the company will keep the cash on its premises for incidental purchases during office operations. To avoid mismanagement of these funds, a company should have tight control over the fund to ensure legal accountability - for tax purposes.
The government temporarily increased the NIC Primary Threshold and Lower Profits Limit for the 2022/2023 tax year from 6th July 2022. This means you will likely experience a change in your take-home pay on and after this date – depending on how much you earn.
EIS and SEIS advance assurance is a provisional confirmation from HMRC indicating that an investment meets the qualifications of SEIS or EIS schemes. It is usually a letter from HMRC, following an application from a company, that shows if you buy shares in the said company, you (investors) can receive potential SEIS and EIS Tax Reliefs.
SEIS and EIS are government-approved tax-relief incentive schemes designed to encourage investment into early-stage businesses. For your business to qualify for either SEIS or EIS - it must meet some requirements – as discussed in this article.
Find out the tax benefits for investors under the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) - Income Tax Relief, Capital Gains Tax, Inheritance Tax, Loss relief Tax, and the initial capital risk.
As a VAT-registered small business owner, you may incur some costs when providing a service to your client. If you have agreed with your customer that you will pass those costs to them on your invoice, it is crucial to understand the difference between disbursements and recharged expenses.
Under normal circumstances, your business should claim back VAT on the VAT return for the period incurred. However, sometimes you can fail to claim VAT in the proper VAT period, following different circumstances. Luckily you can still reclaim the input tax in a later return or via a standalone claim – this practice is commonly referred to as a ‘Late Claim’. This article talks about the time limits of reclaiming late VAT – and what is (or is not) allowed.
First, you need to check the integration is set up within Zoho Books by going to Settings > Integrations > Zoho Expense to see if the integration is active.
Since the introduction of Telsa driving the modern EV market, the option to buy an electric car through your limited company looks more and more attractive than a petrol or diesel car.
Naturally, you may want to change your UTR number if you have had financial trouble or have faced convictions or penalties relating to your tax activities and would like a new start. You may also be thinking of creating a new one if you have lost your current UTR number. This article talks about what to do in each case.
If you prefer to have the company reimburse you for business travel where you use your own car, you can reimburse the actual receipts for fuel, or use HMRC’s approval mileage rates.
As a limited company director, it is crucial to understand that buying a car through your limited company is a complex decision that requires a lot of consideration.
For accounting periods which began on or after 1 April 2021, the claimable tax credit payment for loss-making businesses is limited to £20,000 plus 300% of its total PAYE and National Insurance Contributions. They can only claim an exemption from this cap if the business can prove it is creating or actively managing intellectual property with less than 15% of its R&D costs are subcontracted or using employees of a connected party.
If you receive income or capital gains that do not have tax automatically deducted via your employer’s payroll/PAYE system you will need to report this under a self-assessment. The Self-Assessment personal tax return informs HMRC about your taxable income and gains for a tax year and is submitted online or by paper annually.
HMRC will lock you out of your account if you enter the wrong user ID or password five times. Losing access to your Government Gateway can be frustrating - luckily, it is recoverable.
When using the cash accounting scheme and part of a growing business, it is vital to monitor the taxable turnover of your business, to ensure you are fully prepared when you reach the opting out limit.
Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.
